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Press Release / October 28, 2014 To support growing sales in Brazil’s Midwest, AmBev distributor Lima Logics and Distribution will take delivery of another batch of Volkswagen Worker Series 23.230 “Distributor” beverage trucks to its fleet which serves 34 cities. The trucks will deliver beverage brands including Pepsi, Brahma, Skol, Gatorade and Bohemia. The 6x2 straight trucks are equipped with 225 horsepower MAN D08 engines which meet Brazil’s Euro-5 (EPA2007) emissions standards using MAN’s EGR technology. The trucks are prepped at the factory for body installation to In a competitive market, Volkswagen’s 23.230 6x2 Worker “Distributor” line-up is designed for urban and regional operations, offering robust construction, durability and low maintenance costs. "The beverage industry demands a robust truck chassis with high levels of agility, combined with low body heights for ease of access. These trucks add technological innovations and safety, making driving easier and more comfortable, improving productivity, with durability and low operating costs,” said Ricardo Alouche, vice president of sales marketing and after-sales support at MAN Latin America. http://www.man-la.com/produtos-volkswagen/vocacionais/caminhoes/distributor .

Despite a massive budget deficit, our government is giving away free money (grants) to container haulers. How this directly benefits the American taxpayer remains to be seen.

Fleet Owner / October 29, 2014 The Houston-Galveston Area Council (HGAC) is hosting a Drayage Truck Event at the Port of Houston on Saturday, Nov. 1, from 10:00 a.m. to 1:30 p.m., to share information about available grants and loans to help truck owners replace older vehicles with new, cleaner ones. According to the group, funds that could cover up to 80% of the cost of a new truck are available. HGAC has worked in the past with the Environmental Defense Fund (EDF) on emissions reduction efforts. The original Houston Drayage Loan Program replaced 200 of the more than 3,000 drayage trucks at the port.

I long imagined this was going to happen, diesel demand peaking around the 2015-2017 period and then beginning a gradual fall, owing to reduced demand resulting from more efficient powertrains. This throws the whole viability of natural gas-powered trucks into question.

Transport Topics / October 29, 2014 Higher vehicle efficiencies and the growing use of compressed natural gas in heavy-duty vehicles will lead to a decline in U.S. diesel demand beginning in 2016, according to a report released Oct. 29. Those changes will “more than offset a substantial increase in the number of diesel-powered light-duty vehicles in the market,” said the report by the PIRA Energy Group. The study, “An Assessment of the Diesel Fuel Market: Demand, Supply, Trade and Key Drivers,” was commissioned by the Fuels Institute with funding from the Natso Foundation, the research and public outreach subsidiary of Natso Inc., a trade group that represents truck stops. U.S. diesel demand is expected to drop 12.5% from a near-term peak of about 4 million barrels per day in 2015 to 3.5 million bbd in 2030, the report said. Diesel demand will be strongly affected by new fueling options, shifts in fuel usage and improved efficiencies, in both light- and heavy-duty applications, and in industrial applications, it said. “Changing consumer demand for diesel fuel will have a significant effect on fuel retailers and the U.S. economy,” Natso Foundation President Lisa Mullings said. “This report will help truck stops and travel plazas develop a sound strategy for optimizing these market changes to lead the fuel retailing industry into the future,” she added. The report is available for download at www.fuelsinstitute.org.

Automotive News / October 29, 2014 Penske Automotive Group Inc. wants to grow by snapping up more car dealerships overseas and buying other businesses, such as heavy-duty retail truck stores. Penske said today it agreed to raise its stake in The Around The Clock (ATC) Freightliner Group, a “heavy-duty retail truck dealership group” in Texas, Oklahoma and New Mexico. Penske said such businesses are attractive because they provide strong revenue with lower costs. CEO Roger Penske, in an analyst conference call today, said: “When I look at the commercial vehicle business, 70 percent of the total gross profits are from parts and service. So less capital is involved. It’s a more stable business, and there are not the facility requirements, such as the tiled floors and fancy showrooms,” that many automakers require. He said his company is spending $150 million a year largely on car dealership renovations that manufacturers want. Penske said he also is monitoring a no-haggle pricing program being tested at Toyota of Surprise in Surprise, Ariz. He said he is a “long, long way” from deciding whether or not to take the process to all of the company’s 244 U.S. dealerships, but it is successful so far. He said using one salesperson from start to finish is a cost saver. “The business has grown nicely,” Penske said. “We’re seeing our margin, based on one price, is competitive in the marketplace.” Earlier today, Penske Automotive reported that its third-quarter net income rose 15 percent from the year-earlier period to $75.1 million on strong new- and used-car sales aided by robust business at its U.K. dealerships. Revenue increased 18 percent to $4.42 billion. Revenue rose at a double-digit pace in all categories: new- and used-vehicle sales, fleet and wholesale sales, service and parts, finance and insurance operations and commercial vehicle, car rental and others. Knocking on doors Roger Penske envisions 60 percent of Penske Automotive Group’s revenue coming from its U.S. operations and 40 percent coming from various international holdings. That’s close to where it is now. He wants the company’s vehicle business revenues to grow 5 to 10 percent over the next two years. “The vision is to grow more internationally,” Penske said. “I think that gives us balance. When we look at Spain and Italy today, they’re performing well. Every manufacturer in Europe is knocking on our door today to say, ‘Hey we have an opportunity.’” He said the company wants to stay focused on premium luxury brands and will still consider some “opportunities” in the United States, too. “But we want to stay in line as a premium volume foreign player,” Penske said. Retail sales gains The company’s third-quarter results were driven by solid sales in its U.K. operations. Those operations account for 35 percent of Penske Automotive’s revenue. The U.S. makes up 61 percent, and other international operations account for 4 percent. The higher revenue came on a 10 percent increase in retail sales to 104,963 vehicles. New-vehicle sales rose 9 percent to 57,273 units, outpacing the U.S. industry’s new-vehicle sales growth of 6 percent in the quarter. Penske’s used-vehicle retail sales rose 12 percent to 47,690. On a same-store basis, though, new-vehicle retail sales lagged the overall market with a 4 percent gain to 54,572. Same-store used-vehicle sales rose 7 percent to 45,678. Penske Automotive doesn’t break out unit sales by geographic region -- all totals reflect U.S. and overseas operations. Bigger stake After-tax income from continuing operations rose 16 percent to $77 million. The company said it agreed to raise its stake in ATC Freightliner Group to 86 percent from 27 percent. The acquisition is expected to add $600 million to $700 million in incremental annual revenue, Penske said. Penske Automotive, of Bloomfield Hills, Mich., near Detroit, ranks No. 2 on the Automotive News list of the top 125 dealership groups based in the United States, with retail sales of 199,795 new vehicles in 2013.

Star Tribune / October 27, 2014 Across the country, trucking companies, and manufacturers and retailers with their own fleets, are resorting to an array of incentives, including higher wages, to attract drivers. Wal-Mart Stores Inc., the nation’s biggest retailer and operator of one of its biggest truck fleets, is using radio ads to appeal to qualified truck drivers with an offer of a $76,000 salary plus benefits to join the company. That’s far above the national average trucker pay of around $50,000. Walmart has 7,200 truck drivers but needs more, spokesman Brian Nick said. “There is definitely a shortage in the company … and an overall shortage in the industry,” Nick said. “We are anxious to get more folks’ applications so we can pursue more hiring.” The American Trucking Associations reports that the country has 750,000 “for hire” drivers but needs at least 30,000 more at the moment. It estimates the industry must hire 100,000 drivers every year for 10 years if it hopes to keep up with retirements, turnover and industry growth. Tim Hoag, who owns Copeland Trucking, estimates he turns down about 10 hauling requests from potential customers every day. He’s looking to add eight drivers to the 56 who currently work for the firm. “We could grow as big as we wanted if we could find drivers,” said Hoag, who owns Copeland with his longtime friend Richard Copeland. “We probably passed up $500,000 to $1 million of work this year because we don’t have enough drivers. But everybody’s in the same boat.” The reasons for the shortage are plentiful. The job has limited appeal to start with, because it takes drivers away from their families for extended times. Meanwhile, cost cuts by companies during the recession in 2008 and 2009 compressed drivers’ wages. In 2013, truckers were paid 6 percent less, adjusted for inflation, than they were in 2003. Railroad capacity has been consumed in much of the country by the movement of oil, gas and coal, putting pressure on trucks to move more freight. And new federal regulations have limited the time drivers can spend on the road. “With the new federal regulations, it is harder to find a qualified driver today than ever before,” said Kyle Kottke, general manager of Kottke Today. U.S. truckers can only drive 70 hours a week or 11 hours a day. They can only work 14 hours a day, including the hours frequently spent waiting for short-staffed warehouses to load or unload their rig. Drivers must regularly pull their rigs into checkpoints where officers check their time on the road. Violators are now reported on national databases. “It gives the industry a great transparency and allows us to I.D. who we don’t want on the road,” said Kottke. “But it also takes some of these people and puts them permanently on the sidelines.” Demand for truckers is so great that trucking companies – and the shippers that use them – are seeing their growth constrained. Hoag said he recently heard about a firm in West Texas that was having trouble attracting drivers despite offering $83,000 a year. “You do whatever you have to do to keep the drivers happy and productive,” he said. “You treat them like family. That’s been our secret weapon.”

Bloomberg / October 28, 2014 MAN, Europe's third-largest truck manufacturer, scaled back its 2014 earnings forecast as slowing economies in its home region and Brazil hurt sales and led to a 48 percent drop in third-quarter operating profit. Earnings before interest and taxes will be “moderately” higher this year, Munich-based MAN said today. That compares with predictions in March of “significantly” rising operating profit. Third-quarter earnings on that basis fell to 82 million euros ($104.2 million) from 159 million euros a year earlier, while the value of new orders dropped 20 percent. MAN, a division of Volkswagen AG, lowered full-year targets last month at its truck and bus unit, and outlined production cuts that will reduce hours for 4,000 workers. Daimler AG, the world’s biggest heavy-vehicle maker and the owner of the Freightliner brand in the U.S., forecast steepening industrywide drops in European and Brazilian truck sales. Second-ranked Volvo is also predicting a Europe-wide decline. Compared to its two larger competitors and to VW’s Scania truck unit, “MAN is losing ground, even if Volvo and Daimler have a somewhat different geographical split in their business,” said Marc-Rene Tonn, a Hamburg-based analyst with M.M. Warburg. “The fourth quarter won’t bring a significant uptick in the European or Brazilian economies, and MAN’s performance next year will depend on what measures it takes to adapt to the situation in both those regions.” German business confidence dropped for a sixth month in October, and the Bundesbank predicts little, if any, economic expansion in the final six months of 2014 following a contraction in the second quarter. In Brazil, where President Dilma Rousseff was re-elected on Oct. 26, gross domestic product shrank in the first half, and analysts surveyed by the central bank forecast just 1 percent growth in 2015. MAN rose as much as 0.3 percent to 90.77 euros at 9:28 a.m. in Frankfurt, reversing a decline earlier in the day. The shares have fallen 1.6 percent this year. Wolfsburg, Germany-based Volkswagen owns about three-quarters of MAN’s stock and bid in March 2013 for the rest with the intent of pushing cooperation with Swedish truckmaker Scania and the car manufacturer’s commercial-van business. Truck and bus deliveries in the third quarter fell 14 percent to 28,865 vehicles, dragged down by a 29 percent plunge in Latin America. Revenue fell 5.3 percent to 3.52 billion euros, while order value plunged to 3.47 billion euros. MAN is forecasting a “significant” decline in revenue this year. That compares with an earlier prediction the figure would be “noticeably below” the 2013 level. “Our figures are certainly less than satisfactory,” MAN Chief Executive Officer Georg Pachta-Reyhofen said in the statement. “This is why we are doing everything we can to get back on track as soon as possible.” Group operating-profit growth this year will come from a “slight” increase at the power-engineering division, which was hurt last year by extra project costs, while the commercial-vehicle unit will report a “considerable decline” in earnings, MAN said. http://www.corporate.man.eu/en/press-and-media/presscenter/Difficult-third-quarter-in-2014-due-to-strained-commercial-vehicles-market--169280.html

Transport Topics / October 28, 2014 Paccar Inc., the parent company of Kenworth Truck Co. and Peterbilt Motors Co., posted 20% profit growth in the third quarter and cited a stronger freight environment for its customers. Net income increased to $371.4 million, or $1.04 per share, from $309.4 million, or 87 cents, in the same period last year. Net sales and financial services revenue rose 15% to a quarterly record of $4.93 billion, the company said Oct. 28. “Our North American customers are benefiting from good economic growth, record freight tonnage, improving freight rates and the excellent operating efficiency of our new Kenworth and Peterbilt models in the on-highway and construction markets,” CEO Ron Armstrong said in the report. He also said Paccar’s North American truck factories have increased build rates to meet “strong demand” for the company’s Kenworth and Peterbilt Class 8 trucks. Paccar boosted its full-year estimate for industrywide Class 8 retail sales in the United States and Canada to between 245,000 and 255,000 trucks, up from its projection of 230,000 to 250,000 three months ago. The truck maker also forecast that the 2015 Class 8 market would see retail sales between 240,000 and 270,000 vehicles. “Our customers are benefiting from good economic growth, improving freight rates and lower fuel prices,” said Paccar Executive Vice President Dan Sobic said. “Many of our customers are expanding their fleets, in addition to replacing older vehicles, which is excellent news for the industry.” Quarterly revenue at Paccar Parts rose 10% to a record $784.2 million, the company said. Paccar also is the parent company of Europe-based DAF trucks. http://www.daf.com/news-and-media/articles/global/2014/28-10-2014-paccar-announces-strong-quarterly-revenues-and-earnings

Transport Topics / October 28, 2014 Cummins Inc. reported higher third-quarter income on a strong North American market, and the company boosted its revenue outlook for the full year. The engine maker’s net income rose to $423 million, or $2.32 a share, from $355 million, or $1.90, a year ago. Revenue for the quarter ended Sept. 28 rose 15% to $4.89 billion. Engine sales rose 13% to $2.8 billion, and that segment’s earnings before interest and taxes increased to $330 million from $272 million a year ago. Columbus, Indiana-based Cummins said it expects its full-year revenue to rise between 10% and 12%, up from its previous 8%-to-11% forecast, due to stronger demand in North America. Its power generation unit’s results improved in the quarter, but global demand for power generation equipment remains weak, Cummins said, adding that it is planning to reduce costs in that sector that “could range from $15 million to $40 million” in the fourth quarter.

Heavy Duty Trucking / October 28, 2014 Volvo Trucks North America is recalling 3,175 model year 2014-2015 VAH, VNL and VNM trucks. According to a National Highway Traffic Safety Administration (NHTSA) bulletin, bolts holding the disc brake caliper to the backing plate may not have been tightened to the specified torque. This could cause the disc brake caliper to detach from the backing plate. If that happens, it can affect the brakes to that particular wheel, causing the vehicle to "pull" to the left or right, increasing the risk of a crash. Volvo will notify owners, and dealers will inspect and tighten the bolts to specification, as necessary, free of charge. The recall began October 10. Owners may contact Volvo customer service at 1-800-528-6586. Volvo's number for this recall is RVXX1403. Meantime, a second Volvo Trucks recall involves a far fewer number of trucks. Nearly 50 model year 2015 VNL and VNX trucks equipped with a Volvo D16 engine may suffer from the engine control unit having an incorrect parameter setting in the software, which could lead to the engine stalling and increase the risk of a crash, according to the NHTSA. Volvo will notify owners, and dealers will update the engine control unit software, free of charge. The recall is expected to begin in November. Volvo's number for this recall is RVXX1404.

Press Release / October 27, 2014 MAN Latin America has begun delivering the first Allison transmission-equipped Volkswagen refuse chassis to customers in Chile. The trucks are fitted with 18-yard Heil PT-1000 rear-loading refuse bodies. VW Constellation model 17.280 4x2 “Compactor” vocational chassis feature Euro-5 emissions 6.9-liter 275 horsepower MAN D08 engines paired with six-speed Allison 3000 series transmissions. "Our waste collection customers in Chile are seeking a truck with high levels of performance and fuel economy combined with extreme durability and operator comfort. Tests carried out in the country, in real world operating conditions, allow the us to offer such trucks," says Ricardo Albuquerque, Executive Manager of international sales at MAN Latin America. Compactor Brochure: http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&ved=0CDoQFjAF&url=http%3A%2F%2Fwww.man-la.com%2Fdownload.php%3Fi%3Dimages%2Fstories%2Fprodutos%2Fcaminhao%2Fpdf%2F2783%2F148_vocacionais_compactor_low.pdf&ei=AgpPVNeCCsjLoASOgIGYBg&usg=AFQjCNHKtd2iXYxbPCi5NIF24stbI5OUqQ&bvm=bv.77880786,d.cGU&cad=rjt .

Icarros Trucks Brazil / October 23, 2014 DAF is celebrating the company’s first year of truck production in Brazil. The Brazilian factory is the company’s first outside of Europe. In addition to actively expanding its Brazilian sales and after-sales support network, the Brazilian unit of the Dutch truckmaker is performing local testing of both an upcoming variant of the fleet-focused CF heavy truck range and the all-new XF105, both of which will enter production in Brazil in 2015. "This has been a year of great learning experience for DAF and our entire team. We invested $320 million which resulted in one of DAF’s most modern production facilities which has the ability to assemble 10 thousand trucks a year in two shifts. We have set up dealerships throughout the country, invested in after-sales and started tests of the upcoming new truck model releases. And most rewarding, our customers have approved and recognized all the qualities of our product, "said Marco Davila, President of the DAF Brazil. DAF’s Brazilian assembly plant is located on a 2.3 million square meter site, the largest area of any Paccar production facility. The current factory is 270 thousand suare meters in size, ready for future expansions and programmed according to the upcoming releases and sales volume growth. “All production processes are in accordance with the PPS (PACCAR Production System) system. That, combined with a production team trained at the DAF Academy , ensures the high product quality levels that DAF trucks are known for. In a year of activity, we have achieved one of the lowest rates of non-conformities of the group, the result of a highly trained and integrated into the culture of DAF and, consequently, of PACCAR," adds Davila. .

Truck News / October 26, 2014 It performs beautifully, but it’s heavier and more expensive than an AMT. Will the fuel savings deliver a payback? Four thousand, seven hundred and fifty bucks. That’s what it cost to replace a manual transmission in a five-ton straight truck. Wendell Erb, CEO of Erb Group of Companies, signs off on every expense over $4,000 and he saw enough of these invoices cross his desk to burn that number painfully and permanently into his memory. It was enough to make him decide in 2008 to begin spec’ing Allison automatics in the company’s straight trucks and Erb hasn’t had to replace one yet. With that in mind, it’s little wonder Erb has gradually been automating its heavy-duty fleet as well. And it’s no surprise that Erb is one of the first Canadian fleets to take delivery of Allison’s new TC10 TS automatic transmission. TC is for torque converter, 10 represents the number of forward speeds available and TS stands for tractor series. This is Allison’s first shot at the Class 8 tractor market and it seems a logical next step. Allison transmissions are prevalent in the medium-duty and vocational segments and even some of the most demanding heavy equipment applications. The ongoing trend towards automation in the on-highway market isn’t going to disappear, but that’s not to say this will be an easy market to conquer. Automated manual transmissions (AMTs) have been vastly improved in recent years and some OEMs will be reticent to make available a new threat to their own such products. Allison’s TC10 is initially available for order exclusively in International ProStar and TranStar tractors with the MaxxForce 13 engine. It can handle 600 hp and 1,700 lb.-ft. of torque and has a current GCW limitation of 80,000 lbs. SPECULATION ALERT: Allison will be shopping its TC10 to other truck makers but for now all we can do is speculate on potential matches. I see little reason why Cummins wouldn’t mate it to its ISX15, to provide the market with another alternative to currently available automated powertrains. Kenworth and Peterbilt trucks with Paccar and Cummins engines would seem another logical pairing. I’d be surprised if Daimler and Volvo let it near their vehicles; they’re too heavily invested in their own well-integrated, high-performance automated manuals. For now, there are about 30 ProStar tractors with International engines and Allison TC10 transmissions on the road in Canada. Erb took delivery of five such trucks and when I visited last Thursday for a test drive, they made available the last of these trucks to be deployed into service. This ProStar was fitted with a moose bumper, revealing it will be sent on deliveries to northern Ontario and points west. The others had already scattered in all directions; some California-bound and others headed to Texas. They’ve been given to drivers who were due a new truck and who could be counted on to provide reliable feedback on their performance. Jim Pinder, corporate fleet director at Erb Group and Wendell Erb, CEO, are excited about the potential fuel savings, which Allison says conservatively should amount to 3-5% over currently available automated manual transmissions and much more than that in regional-haul applications with lots of stops and starts. Along for the ride with me were: Altruck International’s Joe Mitchell; John Kay, area sales manager with Allison, to provide an overview of the product; and Tom Boehler, Erb’s safety manager, who came along to serve as the local navigator and to ensure I took good care of their truck. I’m no cowboy driver, but even if I were, there’s little I could do to hurt the TC10. It has layers of protection mechanisms in place to prevent drivers from inflicting damage. Simply put, if you try to do something that would hurt the transmission or other downstream components, the TC10 will override your bad decision. Allison is prolific for the robustness of its transmissions and this is a big reason why. However, while the TC10 is idiotproof, maybe even bulletproof, it still allows the driver to select his or her own gears when it makes sense to do so. On my drive, I didn’t encounter any scenarios where it made sense to try to outsmart the transmission and I suspect that in everyday driving conditions, few such scenarios exist. It has a built-in inclinometer and grade sensor, so it’s pretty savvy at choosing the right gear, even on hills. There are two numbers displayed on the shift pad. The one on the right indicates your current gear and the one next to it displays the number of gears that are available at that moment. This should deter drivers from trying to choose an inappropriate gear in the first place. Seeing the two numbers displayed so closely together takes some getting used to and can hold the eye for an extra split second when glancing down to see which gear you’re in. I’m not sure the second number really needs to be there, but you quickly get used to it. Up and down arrows on the keypad of the version I drove allow you to perform manual shifts. A Mode button provides an extra rpm boost for several seconds, which is nice when you want to complete a pass, maintain your speed on a steep hill or more quickly reach highway speeds from a stop. This feature can be a little addictive and I found plenty of opportunities to use it on my drive. It’s a nice performance feature but not conducive to maximizing fuel economy so it’s best used only when really needed. I suspect the novelty wears off and drivers will be more disciplined with its use than I was. Another nice feature is the ability to check transmission fluid levels from inside the cab. Just press the button and within a moment, the LED indicator will tell you whether or not more oil is required. I did this with the engine running and even then, received reassurance that the oil level was good. The TC10 was designed to outperform today’s automated manual transmissions, and it will have to, given its higher price point, if it’s to gain widespread market acceptance. Kay claims the TC10 will get greater fuel economy and improved reliability over your typical AMT. Performance-wise, the TC10 excelled. Kay says it takes about 18 fewer seconds to go from a stop to 55 mph in a TC10-equipped truck than in one with an automated manual. We were pulling a full load with a gross weight of nearly 80,000 lbs and got up to highway speeds incredibly quickly, often launching from third gear. On the 401 I cruised comfortably at 100 km/h at about 1,150 rpm, which provided a smooth, quiet and relaxed ride. The TC10 is comprised of a five-speed main box with a two-speed range pack, giving it 10 forward speeds. The torque converter replaces the clutch and flywheel in an AMT design. Two reverse speeds give drivers more flexibility when backing up to a dock. While automated manual transmissions suffer a torque interruption every time they shift gears, the torque converter-style automatic provides seamless powershifting for greater efficiency. This is what allows the driver to get up to speed more quickly. Kay admits there’ll be little fuel economy gain provided by the TC10 over an AMT in a low-rpm powertrain when cruising down the highway in top gear, however he said it will deliver fuel economy savings in regional haul applications where increased shifting is required. The TC10 appears to be a robust, well-engineered piece of hardware, but where it really shines is in its software calibrations. The transmission comes standard with Allison’s fifth-generation electronic controls and its FuelSense Max calibrations for maximum fuel economy. These programming features allow the transmission to adapt its performance based on variables such as terrain, load and even driver behaviour. What this means is that even the most lead-footed fuel lush in the fleet will be able to do little to harm the fleet’s fuel economy, even on a bad day. Even if he has an axe to grind with the boss. The transmission won’t let him. You can bury the throttle while accelerating but the FuelSense’s acceleration rate management feature will provide only the acceleration that’s needed to get the load up to speed in an efficient manner. Every driver with a TC10-equipped truck should be a fuel-efficient driver – the transmission will assure it. Unlike other torque converter-style automatics, the TC10 comes to full neutral while stopped, eliminating the load on the engine and providing further fuel savings. The output drive is locked internally within the TC10 to prevent rollback on grades, but this feature is not connected to the vehicle’s ABS, which Kay says is an advantage since brake issues on the vehicle will not interfere with its hill-holding capability. Drivers will notice the TC10 wants to creep forward the moment you release the brake. It’s not a problem, but something you need to be aware of if you’re accustomed to driving an AMT, which won’t begin moving forward until the throttle is engaged. AMTs are better than they’ve ever been, but Boehler told me they still have their quirks, which he hopes will be eliminated with the TC10. For example, in slippery conditions when approaching a stop, trucks with AMTs have been known to experience wheel slip when the torque is lost during a shift. This causes the speedometer to spike then drop suddenly and is recorded by the Qualcomm as a hard-braking incident. This has led to some interesting discussions with drivers. “This (TC10) has constant torque so you don’t get that slip during the shift,” Boehler explained. The TC10 is backed by a five-year, 750,000-mile warranty and there are few concerns about reliability. However, if there’s a knock against it, it would be that it’s heavier and costlier than today’s AMTs. Kay has an answer to both those complaints. The cost premium, which is ultimately determined by the OEM, will be quickly recovered if the fuel savings of 5% or more are realized, Kay says. For forward-thinking fleets like Erb, who have an eye towards total cost of ownership, the acquisition cost of the TC10 becomes more palatable when fuel savings are achieved over the component’s life-cycle, Pinder confirmed. As for weight, Kay acknowledges that at 1,074 lbs, the TC10 could be about 250 lbs heavier than today’s AMTs. However, by spec’ing the MaxxForce 13 over Erb’s other favourite engine, the ISX15, there is a weight saving of about 600 lbs, more than offsetting the weight penalty the transmission incurs. One other limitation within the Canadian market is that the TC10 is currently approved for gross combination weights of up to 80,000 lbs. This suits most of Erb’s routes just fine, but some Canadian customers will want to hold out for a GVWR of 110,000 lbs. Kay says “As with most new Class 8 tractor transmissions the TC10 is initially being offered at the US standard 80K but in time may be approved for higher payloads.” Erb will be keeping a close eye on the fuel performance of the TC10. Pinder said he tracks fuel mileage using fuel tax data, to negate the varying degrees of “optimism” reflected in ECM readings. The transmission performs beautifully and will no doubt be a hit with drivers. If it provides a fuel economy advantage over existing products and can deliver a speedy payback, it could become a serious player in the Class 8 on-highway tractor market. The Spec’s: Tractor: International ProStar+ 122 6×4 Engine: International MaxxForce 13 EPA10 w/SCR, 450 hp/1,700 lb.-ft. Cab: Conventional w/ 73-inch hi-rise sleeper and 42-inch bunk Transmission: Automatic Allison TC10 w/ fifth-generation controls; 10-speed with overdrive, incl. oil level sensor Drive axles: Meritor MT-40-14X-4CFR single reduction tandem axle, 40,000-lb capacity Steer axle: Meritor MFS-13-143A wide track I-beam type, 13,200-lb capacity Wheelbase: 221-inch Front suspension: Spring parabolic, taper-leaf, 14,000-lb capacity with shock absorbers Rear suspension: International ride-optimized air-ride tandem suspension w/ 52-inch axle spacing and 40,000-lb capacity Safety: Bendix ABS w/ electronic stability program; headlights turn on automatically when wipers activated; hood-mounted convex mirrors .

Bloomberg / August 24, 2014 Daimler and Volvo are among truckmakers poised to get a European Union antitrust complaint for suspected collusion, according to three people with knowledge of the probe. Volkswagen AG’s MAN and Scania AB, CNH Industrial's Iveco, and Volvo’s Renault Trucks are also involved in the case, said two of the people who asked not to be named because details are confidential. The six manufacturers were raided by the EU in 2011. The EU’s statement of objections, which lists suspected antitrust violations, may be sent as soon as next month, two of the people said. Paccar's DAF Trucks is also part of the case, one person said. The auto industry is the focus of investigations by competition authorities across the world. The EU is probing “an abundance of cartels” among parts suppliers, an official said last year. Fines can be as much as 10 percent of annual revenue for secret deals with rivals to set prices or rig markets. Manufacturers of ball bearings to car and truckmakers were jointly fined 953 million euros ($1.2 billion) in March. “The investigation is ongoing and we are awaiting its result,” Kina Wileke, a Volvo spokeswoman, said in an e-mailed response to questions on the truck case. CNH Industrial declined to comment, as did Antoine Colombani, a spokesman for the commission in Brussels. “We’re aware of the investigation,” said Silke Mockert, a Daimler spokeswoman on the phone. “We don’t comment on ongoing proceedings.” Scania is included in the EU investigation and has been fully cooperating with authorities, spokesman Hans-Aake Danielsson said in an e-mail. Manuel Hiermeyer, a spokesman for MAN, declined to comment because the probe is ongoing. DAF didn’t respond to a call and and an e-mail. Hyundai Motor Co. and Korean units of Scania, Volvo, Daimler, MAN and Tata Daewoo Commercial Vehicle Co. were fined by South Korean regulators last year for fixing prices of trucks and tractors sold in the country. The U.K. dropped a civil probe into a truck-manufacturing cartel in 2012, saying the EU was “particularly well placed” to handle the investigation on a wider level. British authorities ended a criminal probe into the trucks industry in 2011 that led to the arrest of a Daimler executive, citing lack of evidence.

Automotive News / October 24, 2014 Ford Motor Co.’s third-quarter pretax operating profit tumbled 54 percent from a year earlier to $1.18 billion, hurt by lower sales volume and higher warranty costs. Net income was $835 million, down 34 percent, Ford said in a statement today. The company took a $160 million charge for special separation actions related to its European restructuring plan. In the year-earlier quarter, special pretax charges of $498 million dragged down net. Ford was profitable in its North America and Asia Pacific regions, but lost money in Europe, South America and Middle East & Africa. Revenues fell 3 percent to $34.9 billion. “During the third quarter, we continued to introduce an unprecedented number of new vehicles and invest heavily in the new products and technologies that will deliver strong profitable growth beginning next year,” CEO Mark Fields said in a statement. 'Challenges' In summing up the quarter, CFO Bob Shanks acknowledged, “We did have some challenges. But everything was in line with what we expected at the end of September” when Fields laid out his projections for investors. At that investor conference, Fields cut Ford’s profit outlook for 2014, delivering a jolt to investors who had become accustomed to his predecessor, Alan Mulally, regularly beating Wall Street projections. Fields warned that profits this year would come in at least $1 billion, and as much as $2 billion, below prior guidance. Ford tied the warning to several factors including economic weakness in Russia and South America on top of $1 billion in unplanned warranty expenses. Ford reiterated today that it expects its 2014 pretax profits to be about $6 billion, excluding special items, and that its North American operating margin will be at the lower end of its 8 percent to 9 percent guidance range, while the automaker’s results in Europe, Asia Pacific and Ford Credit will improve from 2013 levels. Volume hurts N.A. In the third quarter, Ford’s North American region posted a pretax profit of $1.41 billion, down 39 percent, hurt by higher warranty costs and lower volume. Revenues fell 6 percent to $19.9 billion, as wholesale volume slid 8 percent to 665,000 units. The volume drop was due to mainly to product launches, including five weeks of downtime in the quarter at the Dearborn Truck Plant near Detroit for the launch of the redesigned F-150 pickup, and supplier parts shortages. In Europe, Ford’s pretax loss widened to $439 million from $182 million a year earlier. Ford said the wider loss was more than explained by Russia, currency losses on its balance sheet, lower component pricing and the non-recurrence of year-earlier special gains. European revenues rose 7 percent to $6.9 billion. In July, Ford posted its first quarterly profit in the region in three years. Asia Pacific drops In the Asia Pacific region, pretax profit fell 62 percent to $44 million, as revenues rose 4 percent to $2.6 billion on a more favorable mix of sales. The revenue figure excludes Ford’s joint ventures in China. Finance chief Shanks said the profit decline was due to the costs of opening five new factories in the region in the next nine months plus the cost of launching the Lincoln brand in China. He said Lincoln recorded its first sale in China today. Eight Lincoln dealerships will be open by the end of 2014. In South America, Ford swung to a pretax loss of $170 million from a pretax profit of $160 million a year earlier, as revenues slid 17 percent to $2.3 billion. Ford cited lower volume and currency losses for the red ink. “Ford is working to manage the effects of slowing GDP growth, declining industry volumes in its larger markets, weaker currencies and high inflation, as well as policy uncertainty in some countries,” the automaker said. In the Middle East & Africa region, pretax losses narrowed to $15 million from $25 million a year earlier, as revenues rose 5 percent to $1.1 billion. Ford Motor Credit’s pretax profit rose 17 percent to $498 million, on higher volume. The company said Ford Credit saw increases in nearly all financing products, including consumer and non-consumer products globally and leasing in North America. Negative cash flow Ford’s automotive operating-related cash flow was a negative $700 million for the third quarter, the first time since the first quarter of 2010 it has been negative, Shanks said. That was due to unfavorable changes in working capital, including the effects of the downtime at the Dearborn Truck Plant. Ford said it expects working-capital changes in the fourth quarter to be positive. Ford said supplier parts shortages also contributed to the negative cash flow. There were shortages at four North American plants, which Shanks declined to name. “We’re not going to identify the suppliers and models,” Shanks said. “There were four different issues. We are not going to make it up fully in the fourth quarter.” Ford ended the quarter with automotive gross cash of $22.8 billion, exceeding debt by $7.9 billion. Three months ago, Ford’s gross cash total of $25.8 billion was $10.4 billion more than debt.

Interestingly, the Ford Otosan Cargo and the CL-9000 both share the same height of 125.8 inches. Transcontinental Mark 2 - 127.6" (unladen) CL-9000 - 125.8" Ford Otosan Cargo 1846T - 125.8" Transcontinental Mark 2- 124.3" (laden) (cab heights excluding air fairings) What was the height of the H-Model? .

Transport Brazil / October 23, 2014 Spearheaded by Vice President of sales and Marketing Roberto Leoncini, Mercedes-Benz is reformulating its commercial truck strategy in Brazil to win back the niche agribusiness transport in soybean producing regions that used to be the truckmaker’s domain. Mr. Leoncini, formerly with Scania, is working to reposition the brand and regain markets. The first part of Leoncini’s strategy is for Mercedes-Benz to reconquer the agribusiness market with the new Axor Econfort, a tractor offering high performance, superior reliability and comfort. In addition to new sales strategies and rebuilding customer relationships, Mercedes is offering the Axor and Actros with drum brakes to better withstand the severe dust operating conditions in agricultural operations. “Although disc brakes are superior for on-road operations, the dust ends up hurting the performance and useful life of the brakes. We listened to the transporters and now we're giving them what they asked for – drum brakes and additional cab comfort features,” said Leoncini. The powertrain offerings of the Mercedes-Benz Actros and Axor in Brazil were designed for pulling three-axle semi-trailers with gross vehicle weights ranging from 48.5 to 53 metric tons (106,924lb to 116,845lb), B-Double trailer configurations (a.k.a. Interlinks) with a GCWR of 57 metric tons (125,663lb) and road-trains up to 74 metric tons (163,142lb). Slightly smaller than the flagship Actros, the Axor Econfort (Economy + Comfort) is now available with a shorter 3,100 mm wheelbase, 6x2 configuration and 360, 410 and 440 horsepower ratings. .

http://www.bigmacktrucks.com/index.php?/topic/34624-mack-scania-cooperation/

Press Release / October 24, 2014 Jacobs Vehicle Systems, manufacturers of the Jake Brake, recently participated in the IAA Show in Hannover, Germany. We had the pleasure of speaking with engineers from around the world who stopped by to discuss the issues they are facing and to learn how our technologies, especially VVA and HPD, could help resolve them. As a partner to the world’s leading OEM’s, including Daimler, Volvo, and DAF, and with product releases in China, Latin America, Europe and North America, Jacobs is working on some of the industry’s most pressing challenges such as emission compliance, engine downsizing, and retarding performance. At the same time, our engineers are exploring, and discussing with new and existing customers, technology solutions that will solve for whatever the industry may face next. If you would like to hear more about what our technologies have to offer or more details about how they work, your regional Jacobs’ representative is available to talk at your convenience. Let’s talk soon! *One other note, we are releasing a series of Technology Briefs over the coming months that will provide an in-depth look at what we are working on. Be sure to download them as they become available. http://www.jacobsvehiclesystems.com/news-events/iaa-international-motor-show-2014/ .

A very happy Bill Ford at the Ford Otosan plant. Bill has long felt a personal connection with Koc Group owing to the long time friendship forged by Henry Ford. .

I had felt that I responded to your misconception in a friendly and polite manner (below), making you aware of the actual fact. I had no idea you felt admonished, nor was that my intention. I apologize for somehow giving you that impression. I humbly suggest that terms such as "Ruskys", which in the U.S. has a history of being used in a derogitory fashion, are best avoided on the forum out of respect for others. Truck (and car) sales marketing in this day and age does indeed involve a great deal of colorful creativity. Not so fast my friend. GAZ didn't copy anyone. In 2006, GAZ purchased the assets of troubled LDV, a UK-based van manufacturer. This gave GAZ the modern LDV Maxus van. That's the cab on their new medium truck. LDV made a good van, but wasn't large or diversified enough to survive. The GAZ Gazelle (LDV Maxus), Ford Transit, Mercedes-Benz Sprint, Fiat Ducato and particularly the Volkswagen Crafter all have unique styling themes. Come to the IAA commercial truck show and see them in person (Sept 25 - Oct 2). http://www.bigmacktrucks.com/index.php?/topic/37160-russian-vehicle-maker-gaz-launches-new-gazon-next-medium-truck/

Truck News / October 22, 2014 Downspeeding is great for fuel economy, but it can wreak havoc on an underspec’d driveline. The trend toward downsped powertrains is unlikely to abate, since a 1% fuel economy gain can be achieved for every 100 rpm slower the engine runs. Several powertrain offerings have come out in recent years that downspeed 200 rpm, providing a 2% fuel savings, which can amount to about $2,200 per truck annually based on US fuel pricing. But those savings can quickly vanish if your truck is stuck on the side of the road with a mangled driveline. This is a legitimate concern, according to Mike Schwanzl, senior manager, field sales with Dana. Schwanzle outlined these issues to Truck News during a one-on-one briefing at the American Trucking Associations Management Conference & Exhibition earlier this month. Downsped powertrains “need faster axle ratios to deliver the same horsepower to the drivline,” Schwanzl explained. “This brings with it the challenges of more torque in the drivetrain. As axle ratios go down numerically, the driveline torque increases.” Dana claims a downsped engine at cruise speed increases torque in the driveline by 57%. Fortifying the driveline is the only way to protect it against the resulting long-term torque stresses. Dana has introduced the new Spicer Advantek 40 tandem axle specifically to address this new challenge. It features the industry’s fastest axle ratios of 2.26:1, to handle the higher axle input torques resulting from lower engine rpms at cruise speeds. The Advantek 40 is a more robust tandem axle than previous designs, which also weighs about 20 lbs lighter. It is coupled with the SPL 350 driveshaft and SPL inter-axle shaft to collectively provide a “fortified” driveline capable of handling the increased torque generated by downsped powertrains, Schwanzl explained. While the Advantek reduces weight by 20 lbs, the SPL 350 driveshaft actually adds 50, for a net loss of 30 lbs. However, Schwanzl pointed out the SPL 350 and SPL 250 have 40% greater torque carrying capability and twice the bearing life over competitive designs. He also noted a lighter-weight steer axle is in the works to gain back some of the weight added by the SPL 350’s heavier-duty u-joint. Dana claims these are the only driveshafts and inter-axle driveshafts in the market today that can provide a million mile life expectancy in a downsped powertrain environment. However, beefing up the driveline isn’t the only thing a fleet can do to reduce the risk of damage. Schwazl suggested fleets also torque-limit the engine through a software recalibration. This will minimize the risk of overloading the driveline in lower gears. “We advocate a combined approach,” he said. With fleets and OEMs pursuing even greater fuel economy, Schwazl said the trend towards slower-running engines and the higher torque loads they create is here to stay. “We are hearing the OEMs want to move down towards 900 rpm cruise speeds, so torques will continue to rise,” he said. “We need to anticipate that and engineer solutions now to accommodate more torque in the driveline.” In the meantime, since the concept of downspeeding is still relatively new, fleets need to ensure they’re spe’ing their drivelines appropriately. Schwazl said Dana saw a spike in equipment failures over the winter – especially in low-speed maneuvers – because customers paired downsped powertrains with traditional drivelines. Some fleets now stuck with an incompatible system have gone so far as to retrofit their driveline components. “We have retrofitted a couple of fleets but that’s expensive to do – it’s really not practical,” Schwazl said. Dana has published a white paper that explores this issue in more detail. It can be found here.

Heavy Duty Trucking / October 22, 2014 Goodyear says it will be testing its "Air Maintenance Technology" (AMT) for commercial vehicles -- which keeps tires inflated without any external pumps or electronics -- on trucking fleets over the next year and a half. Goodyear has been developing and testing the technology since 2011. It automatically keeps tires inflated to a specified cold inflation pressure with internal pumps and sensors. The AMT system is designed to work under many operating conditions and through multiple retreads. “This is an important milestone in the development of AMT for the commercial trucking marketplace,” said Joseph Zekoski, chief technical officer. “The tires equipped with AMT have performed well in testing and we are pleased that so many of our fleet customers were eager to collaborate with us.” The system uses a peristaltic pump technology to automatically maintain tire pressures specified by the fleet. All components of the AMT system are contained within the tire. Properly inflated tires result in lower emissions, longer tire life, improved safety and better performance. The Department of Energy’s Office of Vehicle Technology gave a $1.5 million grand to assist in the research and development of AMT. Representatives from the DOE met with Goodyear’s AMT teams in September to review the progress on the project. “This phase of testing will go a long way in helping us determine when we can make this technology available in the commercial tire marketplace,” said Zekoski.